This news release and accompanying financial highlights are
supplementary to CWB's 2023 Second Quarter Report to Shareholders
and 2022 Annual Report and should be read in conjunction with those
documents.
EDMONTON, AB, May 26, 2023
/CNW/ - CWB Financial Group (TSX: CWB) (CWB) announced financial
performance for the three and six months ended April 30, 2023. Quarterly common shareholders'
net income of $70 million was down
26% and adjusted earnings per share (EPS)(1) of
$0.74 was down 27% from last quarter,
primarily reflecting a 21 basis point increase in the provision for
credit losses as a percentage of average loans(1), the
impact of three fewer interest-earning days and a six basis point
decrease in net interest margin(1). The prior quarter
results reflected the reversal of a previously recognized impaired
loan write-off, which drove a net recovery of credit losses and the
recognition of additional interest income that provided a three
basis point increase to net interest margin. The provision for
credit losses of 12 basis points this quarter remained below our
five-year historical average, and reflected continued strong credit
performance.
Our Board of Directors declared a cash dividend of $0.33 per common share, up one cent, or 3%, from the dividend declared last
quarter and up two cents, or 6%, from
last year.
"The strength and stability of our organization enabled us to
navigate the significant volatility in the global banking industry
this quarter. Subsequent to the emergence of these events, we grew
branch-raised deposits(1), continued to maintain prudent
levels of liquidity, and increased our regulatory capital ratios
with no use of the at-the-market (ATM) program this quarter," said
Chris Fowler, President and CEO. "We
drove solid loan growth across our national footprint, with
especially strong growth in Ontario and general commercial loans, and
delivered another quarter of low credit losses."
"Based on our assessment of market pricing relative to risk and
considering the expected volatility in economic conditions, we have
targeted lower annual loan growth than previously expected. We are
well positioned to capitalize on opportunities to accelerate new
client growth when conditions improve, as we have in past periods
of economic volatility. While we do not expect to achieve our
annual pre-tax, pre-provision income(1) and efficiency
ratio(1) targets for this year, we are adjusting our
expense trajectory to align to the lower loan growth outlook and
deliver an annual adjusted return on equity(1) in line
with our 2023 target."
"We continue to earn national recognition for our commitment to
a people first culture and are very proud that for the second
consecutive year CWB placed within the top 25 on this year's Best
Workplaces™ in Canada. We
thank our teams for their continued dedication and focus to make
CWB the best bank for business owners in Canada."
(1)
|
Adjusted EPS, the
provision for credit losses on total loans as a percentage of
average loans, net interest margin, branch-raised deposits,
pre-tax, pre-provision income, efficiency ratio and adjusted return
on equity are non-GAAP measures. Refer to definitions and detail
provided on page 6.
|
|
|
Financial Performance
Q2 2023,
compared to
Q1 2023
|
Common shareholders'
net income
|
$70 million
|
Down 26%
|
Diluted EPS
Adjusted EPS
|
$0.73
$0.74
|
Down 26%
Down 27%
|
Adjusted Return on
Equity (ROE)
|
8.9 %
|
Down 310 bp
|
Efficiency
ratio
|
55.3 %
|
Up 260 bp
|
bp – basis
point
|
|
Compared to the prior quarter, lower common shareholders' net
income was primarily driven by a 21 basis point increase in the
total provision for credit losses as a percentage of average loans
and a 3% decline in revenue. Pre-tax, pre-provision
income(1) decreased 8%.
Lower revenue reflected a 5% decrease in net interest income,
partially offset by an 11% increase in non-interest income. Higher
non-interest income was primarily due to an increase in foreign
exchange revenue recorded within 'other' non-interest income,
reflective of a strengthening U.S. dollar in the quarter. Net
interest income decreased compared to last quarter as 2% sequential
loan growth was more than offset by three fewer interest-earning
days and a six basis point decrease in net interest margin. Net
interest margin was lower primarily due to a three basis point
interest income recovery recorded in the prior quarter related to
the reversal of a previously recognized impaired loan. The
remaining decline in net interest margin was primarily due to lower
loan related fees and strategic pricing adjustments to certain
administered rate deposit products. As expected, the impact on net
interest margin from higher fixed rate deposit costs continued to
decline this quarter, and was offset by the benefit from repricing
fixed rate loans at higher market interest rates.
Non-interest expenses were well-contained and increased 1%,
primarily driven by the seasonal increase in statutory employee
benefits.
The provision for credit losses on total loans as a percentage
of average loans represented 12 basis points this quarter and was
21 basis points higher than last quarter. The impaired loan
provision of 12 basis points remained below our historical
five-year average of 19 basis points, but increased 24 basis points
from the net recovery of 12 basis point last quarter. The previous
quarter impaired loan provision included the impact of the reversal
of a previously recognized impaired loan write-off. A nil
performing loan provision in the quarter was three basis points
lower than last quarter.
We recognized a 20 basis point increase to our Common Equity
Tier 1 (CET1) capital ratio this quarter, reflecting the adoption
of the Capital Adequacy Requirements (CAR) 2023 guidelines
effective February 1, 2023 and lower
accumulated other comprehensive losses related to a reversal of
previously recognized unrealized losses on our debt securities
portfolio. No common shares were issued under the ATM equity
distribution program this quarter.
Q2 2023,
compared to
Q2 2022
|
Common shareholders'
net income
|
$70 million
|
Down 6%
|
Diluted EPS
Adjusted EPS
|
$0.73
$0.74
|
Down 11%
Down 12%
|
Adjusted ROE
|
8.9 %
|
Down 140 bp
|
Efficiency
ratio
|
55.3 %
|
Up 160 bp
|
bp – basis
point
|
|
Common shareholders' net income decreased compared to the same
quarter last year as a 2% increase in revenue was more than offset
by a 5% increase in non-interest expenses. Pre-tax, pre-provision
income decreased 1%.
Higher revenue reflected a 2% increase in net interest income
and a 4% increase in non-interest income. The increase in net
interest income was primarily due to the benefit of 9% annual loan
growth, partially offset by a 16 basis point decrease in net
interest margin. The decline in net interest margin reflects the
impact of lower loan related fees, including payout penalties, a
proportional shift in our funding mix towards fixed term
branch-raised and insured broker deposits, and fixed rate asset
yields that have lagged the growth of fixed rate deposit costs
through the rising interest rate environment. Our fixed term
deposit portfolio has repriced faster to reflect higher market
interest rates than our fixed term loans, which have a longer
average duration. Loan yields have also been slower to reflect the
changes in market interest rates due to higher levels of
competition for new lending. The decline in net interest margin was
partially offset by the net positive impact of rising Bank of
Canada policy interest rates on
our floating rate loans and deposits.
Non-interest expenses were up 5% from the prior year, primarily
driven by higher people costs related to the impact of salary
increments in the prior year and a higher staffing complement,
including in the Ontario market to
support our continued expansion.
The provision for credit losses on total loans as a percentage
of average loans was two basis points lower than the same quarter
last year due to a decline in the provision for credit losses on
impaired loans.
YTD 2023,
compared to
YTD 2022
|
Common shareholders'
net income
|
$164 million
|
Up 2%
|
Diluted EPS
Adjusted EPS
|
$1.72
$1.76
|
Down 4%
Down 4%
|
Adjusted ROE
|
10.4 %
|
Down 70 bp
|
Efficiency
ratio
|
54.0 %
|
Up 300 bp
|
bp – basis
point
|
|
Common shareholders' net income increased compared to last year
as an 11 basis point decline in the total provision for credit
losses and 2% growth in revenue more than offset higher
non-interest expenses. Pre-tax, pre-provision income decreased 4%.
Total revenue increased 2%, reflecting a 3% increase in net
interest income, partially offset by a 2% decrease in non-interest
income. Net interest income increased from the prior year as 9%
annual loan growth was partially offset by a 15 basis point
decrease in net interest margin.
Non-interest expenses were up 8%, driven by higher people costs
due to the same factors as noted in the comparison to the same
quarter last year and our continued investment in our digital
capabilities.
The total provision for credit losses as a percentage of average
loans of one basis point was 11 basis points lower than the prior
year, due to a 14 basis point decrease in the impaired loan
provision, partially offset by a three basis point increase in the
performing loan provision. The lower impaired loan provision
primarily reflects the reversal of a previously recognized impaired
loan write-off recorded in the first quarter of this year.
Financial Targets
The financial targets outlined below reflect key financial
objectives we expected to drive on the assumption of relatively
stable economic conditions and under the Standardized
approach for capital management.
Annual
Metrics
|
Performance
Target
|
Pre-tax pre-provision
income growth
|
Greater than
10%
|
Adjusted ROE
|
10-11% in 2023, 12% by
2024
|
Efficiency
ratio
|
Less than
50%
|
Economic and financial market conditions have been volatile over
the past quarter. As described further in the Outlook section of
our 2023 Second Quarter Management Discussion and Analysis, based
on our assessment of market pricing relative to risk and
considering the expected volatility in economic conditions, we have
targeted lower annual loan growth than previously expected. Given a
lower outlook for loan growth, we no longer expect to achieve our
annual pre-tax, pre-provision income and efficiency ratio
performance targets for fiscal 2023. We continue to expect to
deliver annual adjusted ROE in line with our 2023 performance
target, supported by lower than expected credit losses and
management of non-interest expenses reflecting our expectation of
lower loan growth.
We will provide our 2024 outlook in our 2023 Annual Management
Discussion and Analysis, reflecting the expected economic
conditions at that time.
About CWB Financial Group
CWB Financial Group (CWB) is the only full-service bank in
Canada with a strategic focus to
meet the unique financial needs of businesses and their owners. We
provide our nation-wide clients with full-service business and
personal banking, specialized financing, comprehensive wealth
management offerings, and trust services. Clients choose CWB for a
differentiated level of service through specialized expertise,
customized solutions, and faster response times relative to the
competition. Our people take the time to understand our clients and
their business, and work as a united team to provide holistic
solutions and advice.
As a public company on the Toronto Stock Exchange (TSX), CWB
trades under the symbols "CWB" (common shares), "CWB.PR.B" (Series
5 preferred shares) and "CWB.PR.D" (Series 9 preferred shares). We
are firmly committed to the responsible creation of value for all
our stakeholders and our approach to sustainability will support
our continued success. Learn more at www.cwb.com.
Fiscal 2023 Second Quarter Results
Conference Call
CWB's second quarter results conference call is scheduled for
Friday, May 26, 2023, at
10:00 a.m. ET (8:00 a.m. MT). CWB's executives will comment
on financial results and respond to questions from analysts.
The conference call may be accessed on a listen-only basis by
dialing (416) 764-8688 (Toronto)
or 1 (888) 390-0546 (toll-free) and entering passcode: 07376453.
The call will also be webcast live on CWB's website:
www.cwb.com/investor-relations/quarterly-reports.
A replay of the conference call will be available until
June 2, 2023 by dialing (416)
764-8677 (Toronto) or 1 (888)
390-0541 (toll-free) and entering passcode: 376453#.
FOR FURTHER INFORMATION CONTACT:
Chris Williams, MBA
AVP, Investor Relations
Phone: (780) 508-8229
Email: chris.williams@cwbank.com
Forward-looking
Statements
From time to time, we make written and verbal forward-looking
statements. Statements of this type are included in our Annual
Report and reports to shareholders and may be included in filings
with Canadian securities regulators or in other communications such
as media releases and corporate presentations. Forward-looking
statements include, but are not limited to, statements about our
objectives and strategies, targeted and expected financial results
and the outlook for CWB's businesses or for the Canadian economy.
Forward-looking statements are typically identified by the words
"believe", "expect", "anticipate", "intend", "estimate", "may
increase", "may impact", "goal", "focus", "potential", "proposed"
and other similar expressions, or future or conditional verbs such
as "will", "should", "would" and "could".
By their very nature, forward-looking statements involve
numerous assumptions and are subject to inherent risks and
uncertainties, which give rise to the possibility that our
predictions, forecasts, projections, expectations and conclusions
will not prove to be accurate, that our assumptions may not be
correct, and that our strategic goals will not be achieved.
A variety of factors, many of which are beyond our control, may
cause actual results to differ materially from the expectations
expressed in the forward-looking statements. These factors include,
but are not limited to, general business and economic conditions in
Canada, including housing market
conditions, the volatility and level of liquidity in financial
markets, fluctuations in interest rates and currency values, the
volatility and level of various commodity prices, changes in
monetary policy, changes in economic and political conditions,
material changes to trade agreements, transition to the Advanced
Internal Ratings Based (AIRB) approach for regulatory capital
purposes, legislative and regulatory developments, legal
developments, the level of competition, the occurrence of natural
catastrophes, outbreaks of disease or illness that affect local,
national or international economies, changes in accounting
standards and policies, information technology and cyber risk, the
accuracy and completeness of information we receive about customers
and counterparties, the ability to attract and retain key
personnel, the ability to complete and integrate acquisitions,
reliance on third parties to provide components of business
infrastructure, changes in tax laws, technological developments,
unexpected changes in consumer spending and saving habits, timely
development and introduction of new products, the impact of bank
failures or other adverse developments at other banks that drive
negative investor and depositor sentiment regarding the stability
and liquidity of banks, and our ability to anticipate and manage
the risks associated with these factors. It is important to note
that the preceding list is not exhaustive of possible factors.
Additional information about these factors can be found in the
Risk Management section of our 2022 Annual MD&A. These
and other factors should be considered carefully, and readers are
cautioned not to place undue reliance on these forward-looking
statements as a number of important factors could cause our actual
results to differ materially from the expectations expressed in
such forward-looking statements. Any forward-looking statements
contained in this document represent our views as of the date
hereof. Unless required by securities law, we do not undertake to
update any forward-looking statement, whether written or verbal,
that may be made from time to time by us or on our behalf. The
forward-looking statements contained in this document are presented
for the purpose of assisting readers in understanding our financial
position and results of operations as at and for the periods ended
on the dates presented, as well as our strategic priorities and
objectives, and may not be appropriate for other purposes.
Assumptions about the performance of the Canadian economy over
the forecast horizon and how it will affect our business are
material factors considered when setting organizational objectives
and targets. In determining expectations for economic growth, we
consider our own forecasts, economic data and forecasts provided by
the Canadian government and its agencies, as well as certain
private sector forecasts. These forecasts are subject to inherent
risks and uncertainties that may be general or specific. Where
relevant, material economic assumptions underlying forward-looking
statements are disclosed within the Outlook and Allowance
for Credit Losses sections of our interim and annual
MD&A.
Non-GAAP Measures
We use a number of financial measures and ratios to assess our
performance against strategic initiatives and operational
benchmarks. Some of these financial measures and ratios do not have
standardized meanings prescribed by Generally Accepted Accounting
Principles (GAAP) and may not be comparable to similar measures
presented by other financial institutions. Non-GAAP financial
measures and ratios provide readers with an enhanced understanding
of how we view our financial performance. These measures and ratios
may also provide the ability to analyze trends related to
profitability and the effectiveness of our operations and
strategies, and are disclosed in compliance with National
Instrument 52-112 Non-GAAP and Other Financial Measures
Disclosure.
To calculate non-GAAP financial measures,
we exclude certain items from our financial results
prepared in accordance with IFRS. Adjustments relate to items which
we believe are not indicative of underlying operating
performance. Our non-GAAP financial measures include:
- Adjusted non-interest expenses – total non-interest expenses,
excluding pre-tax amortization of acquisition-related intangible
assets, and acquisition and integration costs. Acquisition and
integration costs include direct and incremental costs incurred as
part of the execution and integration of business
acquisitions.
- Adjusted common shareholders' net income – total common
shareholders' net income, excluding the amortization of
acquisition-related intangible assets, and acquisition and
integration costs, net of tax.
- Pre-tax, pre-provision income – total revenue less adjusted
non-interest expenses.
The following table provides a reconciliation of our non-GAAP
financial measures to our reported financial results.
|
For the three months
ended
|
Change
from April
30
2022
|
|
For the six months
ended
|
Change
from April
30
2022
|
|
(unaudited)
(thousands)
|
|
April 30
2023
|
|
|
January
31 2023
|
|
|
April 30
2022
|
|
|
|
April 30
2023
|
|
|
April 30
2022
|
|
Non-interest
expenses
|
$
|
148,388
|
|
$
|
147,217
|
|
$
|
141,457
|
|
5
|
%
|
$
|
295,605
|
|
$
|
272,864
|
8
|
%
|
Adjustments (before
tax):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquisition-related intangible assets
|
|
(2,032)
|
|
|
(2,981)
|
|
|
(2,557)
|
|
(21)
|
|
|
(5,013)
|
|
|
(5,098)
|
(2)
|
|
Acquisition and
integration costs
|
|
(190)
|
|
|
(375)
|
|
|
(58)
|
|
228
|
|
|
(565)
|
|
|
(58)
|
874
|
|
Adjusted
non-interest expenses
|
$
|
146,166
|
|
$
|
143,861
|
|
$
|
138,842
|
|
5
|
%
|
$
|
290,027
|
|
$
|
267,708
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shareholders'
net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
(after-tax):
|
$
|
70,040
|
|
$
|
94,363
|
|
$
|
74,164
|
|
(6)
|
%
|
$
|
164,403
|
|
$
|
161,806
|
2
|
%
|
Amortization of
acquisition-related intangible assets(1)
|
|
1,500
|
|
|
2,446
|
|
|
1,913
|
|
(22)
|
|
|
3,946
|
|
|
3,814
|
3
|
|
Acquisition and
integration costs(2)
|
|
143
|
|
|
281
|
|
|
44
|
|
225
|
|
|
424
|
|
|
44
|
864
|
|
Adjusted common
shareholders' net income
|
$
|
71,683
|
|
$
|
97,090
|
|
$
|
76,121
|
|
(6)
|
%
|
$
|
168,773
|
|
$
|
165,664
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
|
264,414
|
|
$
|
272,891
|
|
$
|
258,761
|
|
2
|
%
|
$
|
537,305
|
|
$
|
524,737
|
2
|
%
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
non-interest expenses (see above)
|
|
146,166
|
|
|
143,861
|
|
|
138,842
|
|
5
|
|
|
290,027
|
|
|
267,708
|
8
|
|
Pre-tax,
pre-provision income
|
$
|
118,248
|
|
$
|
129,030
|
|
$
|
119,919
|
|
(1)
|
%
|
$
|
247,278
|
|
$
|
257,029
|
(4)
|
%
|
(1)
|
Net of income tax of
$532 for the three months ended April 30, 2023 (Q1 2023 – $535, Q2
2022 – $644) and $1,067 for the six months ended April 30, 2023 (Q2
2022 – $1,284).
|
(2)
|
Net of income tax of
$47 for the three months ended April 30, 2023 (Q1 2023 – $94, Q2
2022 – $14) and $141 for the six months ended April 30, 2023 (Q2
2022 – $14).
|
Non-GAAP ratios are calculated using the non-GAAP financial
measures defined above. Our non-GAAP ratios include:
- Adjusted earnings per common share – diluted earnings per
common share calculated with adjusted common shareholders' net
income.
- Adjusted return on common shareholders' equity – annualized
adjusted common shareholders' net income divided by average common
shareholders' equity, which is total shareholders' equity excluding
preferred shares and limited recourse capital notes.
- Efficiency ratio – adjusted non-interest expenses divided by
total revenue.
- Operating leverage – growth rate of total revenue less growth
rate of adjusted non-interest expenses.
Supplementary financial measures are measures that do not have
definitions prescribed by GAAP, but do not meet the definition of a
non-GAAP financial measure or ratio. Our supplementary financial
measures include:
- Return on assets – annualized common shareholders' net income
divided by average total assets.
- Net interest margin – annualized net interest income divided by
average total assets.
- Return on common shareholders' equity – annualized common
shareholders' net income divided by average common shareholders'
equity.
- Write-offs as a percentage of average loans – annualized
write-offs divided by average total loans.
- Book value per common share – total common shareholders' equity
divided by total common shares outstanding.
- Branch-raised deposits – total deposits excluding broker term
and capital market deposits.
- Provision for credit losses on total loans as a percentage of
average loans – annualized provision for credit losses on loans,
committed but undrawn credit exposures and letters of credit
divided by average total loans. Provisions for credit losses
related to debt securities measured at fair value through other
comprehensive income (FVOCI) and other financial assets are
excluded.
- Provision for credit losses on impaired loans as a percentage
of average loans – annualized provision for credit losses on
impaired loans divided by average total loans.
- Provision for credit losses on performing loans as a percentage
of average loans – annualized provision for credit losses on
performing loans (Stage 1 and 2) divided by average total
loans.
- Average balances – average daily balances.
Selected Financial Highlights
|
For the three months
ended
|
Change from
|
|
For the six months
ended
|
Change from
|
|
(unaudited)
(thousands, except per
share amounts)
|
|
April 30
2023
|
|
|
January 31
2023
|
|
|
April 30
2022
|
|
April 30
2022
|
|
|
April 30
2023
|
|
|
April 30
2022
|
|
April 30
2022
|
|
Results from
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
230,523
|
|
$
|
242,280
|
|
$
|
226,109
|
|
2
|
%
|
$
|
472,803
|
|
$
|
459,181
|
|
3
|
|
Non-interest
income
|
|
33,891
|
|
|
30,611
|
|
|
32,652
|
|
4
|
|
|
64,502
|
|
|
65,556
|
|
(2)
|
|
Total
revenue
|
|
264,414
|
|
|
272,891
|
|
|
258,761
|
|
2
|
|
|
537,305
|
|
|
524,737
|
|
2
|
|
Pre-tax,
pre-provision income(1)
|
|
118,248
|
|
|
129,030
|
|
|
119,919
|
|
(1)
|
|
|
247,278
|
|
|
257,029
|
|
(4)
|
|
Common
shareholders' net income
|
|
70,040
|
|
|
94,363
|
|
|
74,164
|
|
(6)
|
|
|
164,403
|
|
|
161,806
|
|
2
|
|
Common Share
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.73
|
|
$
|
0.99
|
|
$
|
0.82
|
|
(11)
|
%
|
$
|
1.72
|
|
$
|
1.80
|
|
(4)
|
|
Diluted
|
|
0.73
|
|
|
0.99
|
|
|
0.82
|
|
(11)
|
|
|
1.72
|
|
|
1.79
|
|
(4)
|
|
Adjusted(1)
|
|
0.74
|
|
|
1.02
|
|
|
0.84
|
|
(12)
|
|
|
1.76
|
|
|
1.83
|
|
(4)
|
|
Cash
dividends
|
|
0.32
|
|
|
0.32
|
|
|
0.30
|
|
7
|
|
|
0.64
|
|
|
0.60
|
|
7
|
|
Book
value(1)
|
|
34.90
|
|
|
34.26
|
|
|
33.43
|
|
4
|
|
|
34.90
|
|
|
33.43
|
|
4
|
|
Closing market
value
|
|
24.30
|
|
|
28.12
|
|
|
32.41
|
|
(25)
|
|
|
24.30
|
|
|
32.41
|
|
(25)
|
|
Common shares
outstanding (thousands)
|
|
96,308
|
|
|
96,229
|
|
|
91,569
|
|
5
|
|
|
96,308
|
|
|
91,569
|
|
5
|
|
Performance
Measures(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on common
shareholders' equity
|
|
8.7
|
%
|
|
11.6
|
%
|
|
10.0
|
%
|
(130)
|
bp
|
|
10.1
|
%
|
|
10.8
|
%
|
(70)
|
bp
|
Adjusted return
on common shareholders' equity
|
|
8.9
|
|
|
12.0
|
|
|
10.3
|
|
(140)
|
|
|
10.4
|
|
|
11.1
|
|
(70)
|
|
Return on
assets
|
|
0.69
|
|
|
0.90
|
|
|
0.79
|
|
(10)
|
|
|
0.80
|
|
|
0.86
|
|
(6)
|
|
Net interest
margin
|
|
2.26
|
|
|
2.32
|
|
|
2.42
|
|
(16)
|
|
|
2.29
|
|
|
2.44
|
|
(15)
|
|
Efficiency
ratio
|
|
55.3
|
|
|
52.7
|
|
|
53.7
|
|
160
|
|
|
54.0
|
|
|
51.0
|
|
300
|
|
Operating
leverage
|
|
(3.1)
|
|
|
(9.0)
|
|
|
(10.3)
|
|
720
|
|
|
(5.9)
|
|
|
(7.1)
|
|
120
|
|
Credit
Quality(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
(recovery of) credit losses on total loans
as a percentage of average
loans(2)
|
|
0.12
|
|
|
(0.09)
|
|
|
0.14
|
|
(2)
|
|
|
0.01
|
|
|
0.12
|
|
(11)
|
|
Provision for
(recovery of) credit losses on
impaired loans as a percentage of average
loans(2)
|
|
0.12
|
|
|
(0.12)
|
|
|
0.14
|
|
(2)
|
|
|
(0.01)
|
|
|
0.13
|
|
(14)
|
|
Balance
Sheet(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
$
|
42,227,843
|
|
$
|
41,706,375
|
|
$
|
38,915,020
|
|
9
|
%
|
|
|
|
|
|
|
|
|
Loans(4)
|
|
37,150,595
|
|
|
36,416,656
|
|
|
34,041,369
|
|
9
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
33,255,533
|
|
|
33,113,849
|
|
|
31,289,488
|
|
6
|
|
|
|
|
|
|
|
|
|
Debt
|
|
3,846,915
|
|
|
3,803,068
|
|
|
3,131,854
|
|
23
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
3,935,941
|
|
|
3,871,964
|
|
|
3,636,036
|
|
8
|
|
|
|
|
|
|
|
|
|
Off-Balance
Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth
Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
under management and administration
|
|
8,149,296
|
|
|
8,260,366
|
|
|
8,278,744
|
|
(2)
|
|
|
|
|
|
|
|
|
|
Assets
under advisement(5)
|
|
2,208,618
|
|
|
1,924,278
|
|
|
1,992,438
|
|
11
|
|
|
|
|
|
|
|
|
|
Assets Under
Administration – Other
|
|
15,092,141
|
|
|
14,290,188
|
|
|
14,471,848
|
|
4
|
|
|
|
|
|
|
|
|
|
Capital
Adequacy(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity
Tier 1 ratio
|
|
9.3
|
%
|
|
9.1
|
%
|
|
8.9
|
%
|
40
|
bp
|
|
|
|
|
|
|
|
|
Tier 1
ratio
|
|
11.1
|
|
|
10.9
|
|
|
10.8
|
|
30
|
|
|
|
|
|
|
|
|
|
Total
ratio
|
|
13.1
|
|
|
12.8
|
|
|
12.3
|
|
80
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
full-time equivalent staff
|
|
2,734
|
|
|
2,737
|
|
|
2,617
|
|
4
|
%
|
|
|
|
|
|
|
|
|
(1)
|
Non-GAAP measure –
refer to definitions and detail provided on page 6.
|
(2)
|
Includes provisions for
credit losses on loans, committed but undrawn credit exposures and
letters of credit.
|
(3)
|
Certain comparative
figures have been reclassified to conform with the current period's
presentation.
|
(4)
|
Excludes the allowance
for credit losses.
|
(5)
|
Primarily comprised of
assets under advisement related to our Indigenous Services wealth
management business.
|
(6)
|
Calculated using the
Standardized approach in accordance with guidelines issued
by the Office of the Superintendent of Financial Institutions
Canada (OSFI).
|
bp
– basis point
|
SOURCE CWB Financial Group